The current sell-off in BTC prices has likely crested, suggesting that Bitcoin traders have reached their top. The daily chart of Bitcoin has been devoid of three consecutive red candles since, ironically, the first week of November—right before Donald Trump’s US election triumph.
Another commonality is that Bitcoin retested the level of the 50-day exponential moving average when three or more red candles were shown on the daily chart. An Impending Bitcoin Crash Is Building Up: With a price drop of over 15% from its all-time high, the largest cryptocurrency by market cap may have weathered the worst of the crash, claims one analyst.
Analyst says Bitcoin fall
Captain Faibik, an independent crypto trader, forecast that the drop in the value of Bitcoin was coming to an end on December 20, when its price fell below $93,000. According to this trader’s X post, the current decline in Bitcoin’s price is because of the large negative divergence that has occurred between the price and relative strength index (RSI) during the past month. Following a “healthy reset,” such divergences usually result in a drop of 8 to 10%.
From the $94,000 range, the trader expects the price to recover. An unnamed cryptocurrency trader going by the name of “Cold Blooded Shiller” predicted a steeper drop. The price of bitcoin follows the divergence signal. Someone in the trading industry has predicted that Bitcoin’s price will drop to $85,000. If the same thing happens in January of 2024, you can see how the market is acting now.
Byzantine General, an authority in the futures market, said that spot holders were continually selling. Due to Bitcoin’s recent price surge to $66,000, the analyst has deemed this sale to be noteworthy. There has been “relentless” selling pressure on the Coinbase premium since it hit a quarterly low.
Bitcoin by $28.9 million was lost
The volume of realized losses peaked above its weekly average as selling pressure rose hourly. Bitcoin lost $28.9 million in the five days before the loss. Bitcoin Nears: This is a 320% increase from its 2024 weekly average. Axel Adler Jr., an authority on the Bitcoin blockchain, claims that only ten digits have exceeded 28 million so far this year.
Bitcoin’s intermediate-term chart signaled a bearish break of structure (BOS). There can be no reversal as long as Bitcoin maintains a daily candlestick close to over $95,000. The 4-hour candle has swiftly rebounded from a dip to $92,777, according to the data, and is now trading above $95,000. There Will Soon Be a Bitcoin Crash: To offset the pessimistic sentiment, Bitcoin would be ideal if its daily candle closed over $95,000.
Summary
Bitcoin Nears: There has been a significant amount of selling pressure, resulting in losses of $28.9 million, which is more than the weekly average. If bitcoin’s daily price remains above $95,000, the trend may reverse, indicating recovery. Traders’ losses have reached a peak, so the Bitcoin sell-off may be nearing its bottom. The price of Bitcoin fell below $93,000, but economists expect a rebound from $94,000. Bitcoin’s price drops after a negative divergence with the relative strength index (RSI), typically by 8-10%. Some analysts predict an even deeper drop to $85,000.
